6 TRENDS THAT HELP INSURANCE CARRIERS SURVIVE THE DIGITAL TRANSFORMATION

Technology helps us in many different ways. Tech has revolutionized the way we travel, transport, talk, shop, eat and much more.

Technology also has delivered a digital revolution that makes the insurance industry stand at a crossroad. If the insurance carriers are bold enough to take advantage of the technologies that the digital transformation can deliver it will lead to dramatic business improvement.

Here are six tech trends according to the website RedPixie that insurance companies should take a hard look at.

1. Big Data Analytics

By collecting data on their users, forward-thinking insurance companies have been able to customize their service to each customer.

In recent years, ‘Executives at large and small carriers alike have been building centers of excellence (COE’s), with dedicated staff focused on advanced analytics,’ according to McKinsey’s report.

2. Internet of Things [IoT]

But where does the IoT data come from?

In car insurance, black box insurance has become a category allowing insurance customers to install a telematics device that measures their driving safety and calibrates their quote accordingly.

Additionally, some big data services can tap straight into the products consumers already use because they rely on the internet to function.

Tools such as Fitsense allow life and health insurers to personalize their insurance offers to individuals based on the readings from their fitness trackers.

3. The Cloud

The cloud is a catch-all term for a huge variety of business services. Moving their infrastructure, including high-performance computing and modeling, to the cloud allows insurance companies to update and streamline their infrastructure.

This improves the efficiency of their employees and saves money.

4. Machine Learning

As machine learning tools have improved, so they have become more applicable to the insurance industry. These tools tap into big data pools and help make data analytics more effective. This could provide huge benefits to firms in meeting compliance needs, reducing costs and staying competitive.

5. Marketing Automation

The rise of cheap marketing technologies and social media have made it easier for insurance firms of any size to promote themselves and compete with the market leaders.

65% of traditional European insurers plan to professionalize their online marketing (e.g., purchase of keywords) and 45% aim to improve their social media presence according to McKinsey’s research.

6. Blockchain

This tool is far more than just a Bitcoin technology; it’s said to be a technology that will make far-reaching changes to the worldwide economy over the next decade.

“Blockchain technologies can help the wholesale insurance sector fulfill its role in underpinning the global economy more effectively.” – PWC

Suggesting that the technology could reduce costs, errors and employee time wasted for savvy insurance firms.